Skip Navigation Links

Congress Plans to Double Stafford Loan Interest Rates

March 14, 2012

Congress Plans to Double Stafford Loan Interest Rates

by Suada Kolovic

Recent reports suggest that student loan debt has surpassed credit card debt for the first time and will reach $1 trillion this year. The average college student leaves owing $25,000 in loans, putting them at risk of having to significantly delay moving on to different life stages such as buying a house, getting married and even having children. Curious as to how the government has responded in aiding and relieving students of insurmountable debt? By possibly doubling the interest rate of the most popular federally subsidized loans, of course.

On Tuesday, college students delivered more than 130,000 letters to congressional leaders at the Capitol to protest the increase. Unless Congress takes action, the interest rate on subsidized Stafford loans is set to double from 3.4 percent to 6.8 percent on July 1, increasing the average debt by $2,800 for more than 7 million students receiving the loans, according to a spokesman for the Democratic members of the House Committee on Education & the Workforce. Why is Congress considering the increase when so many students are already in debt? In 2007, Congress voted to cut the Stafford interest rate, which in turn cost an estimated $7.2 billion from 2007 to 2012 and, according to the Congressional Budget Office, that burden was shouldered almost entirely by lenders and loan-guarantee agencies. "We all want to promote efforts that will reduce college costs, but the era of empty promises has to end," said John P. Kline Jr., a Republican from Minnesota who is the committee's chairman. "The interest rate hike students face is the result of a ticking time bomb set by Democrats five years ago," Mr. Kline said. "Simply calling for more of the same is a disservice to students and taxpayers." (For more on this story, click here.)

Soon-to-be college graduates, do you fear crippling student loan debt? What steps are you taking to prevent becoming a statistic?

Comments

Multiple Law Schools Could Face Litigation Over Job Placement Rates

March 15, 2012

Multiple Law Schools Could Face Litigation Over Job Placement Rates

by Suada Kolovic

With the cost of a college education rising relentlessly and our economy still downturned, students are faced with a tragic catch-22: either become saddled with overwhelming debt or forgo a college education and limit your career possibilities. But are those the only options? What if students could prosecute their alma maters because they were misled by high job placement rates? Well if you pursued law school, chances are your college will soon be in the midst of a similar situation.

According to reports, 20 more law schools have found themselves under fire regarding allegedly deceptive job placement rates. The eight firms held a news conference announcing that they were seeking to file class action lawsuits and predicted that “nearly every law school in the country” would soon face litigation. With the team promising to sue 20 to 25 schools every few months, several law schools have already started revising their employment data – data that reflects much lower percentages of students securing full-time positions and reveal that salary statistics were based on a small percentage of students who voluntarily reported their incomes. David Anziska, one of the lead lawyers, said the team hopes that the law schools would eventually enter into a “global settlement” under pressure from the courts, regulators and legislators.

What do you think of the lawsuit? Is it fair to target law schools during these trying economic times when almost all college graduates, regardless of their majors, are struggling to find employment? Let us know in the comments section.

Comments

Colleges Worry About End of Federal Aid-Based Ability Benefit

March 20, 2012

Colleges Worry About End of Federal Aid-Based Ability Benefit

by Alexis Mattera

It may feel like we’ve skipped winter but federal aid is about to be put on ice for college hopefuls lacking high school diplomas or GEDs.

As of July 1st, newly-enrolled students will no longer be allowed to take an "ability to benefit" test or complete a set amount of credits without aid; instead, college students will be required to have high school diplomas or GEDs in order to receive federal financial aid. How will these students – many of whom are older, seeking training to find a new job, immigrants and students in states like California where the basic adult education budget has been cut – pay for school? College administrators anticipate they will turn to private loans...or give up on their degrees entirely.

David Baime, vice president for government relations at the American Association of Community Colleges, says the change “runs counter to the missions of many of our colleges,” as these schools view enrolling students without high school credentials as a key part of providing access to higher education: There are currently about 836,000 students without high school diplomas or GEDs enrolled at two-year public colleges nationwide and according to a limited 2006-2007 Education Department study, students without high school diplomas and GEDs were ultimately more successful in college and had higher GPAs than their classmates with high school diplomas, even if they failed the "ability to benefit" test. If would-be students have to get a GED before going to college and receive zero financial assistance while they prepare, Baime says many will opt out altogether.

What do you think of the new rule regarding federal aid? Do you think a high school diploma or GED is necessary to succeed in college?

Comments

Commit Now, Pay Later

Public College Tuition Often Still Undecided by Enrollment Deadlines

March 21, 2012

Commit Now, Pay Later

by Alexis Mattera

The cost of college is a huge factor for a high school senior about to head off to college for the first time, a transfer student getting ready to continue his or her education at a four-year school and an undergrad preparing to pursue a graduate degree. If the student can’t afford to attend a specific school, an alternate institution that better fits his or her college budget should be selected...but what if tuition is still undetermined before the enrollment deadline?

This scenario is common at public universities across the country, as they cannot announce the next year’s tuition until they know how much funding they will receive from their respective states. Though schools like Towson and UVa offer estimates, banking on those figures is a gamble: For example, VCU raised tuition 24 percent in 2010 and the average public university in California raised expenses 21 percent last year – sizeable increases few college hopefuls could have expected. Colleges in this position have to work out preliminary financial aid packages based on the current year’s costs and adjust the awards after tuition is set. Students weighing their enrollment options at private universities have it much easier: A recent report projected private tuition would rise between 4 and 5 percent for next year but schools including Georgetown, UPenn and Goucher have already set and posted their tuition rates for the upcoming academic year.

Are you still waiting on next year’s tuition rates to make your college choice?

Comments

State Financial Aid Runs Dry in Illinois

March 22, 2012

State Financial Aid Runs Dry in Illinois

by Alexis Mattera

Did you already file your FAFSA this year? If you live in Illinois, your early bird mentality will help you pay for college because state funding has run out earlier than expected.

Officials said the state’s primary source of need-based financial aid, the Monetary Award Program (MAP), received 40,000 more applications this year than last. "It's a sign of incredible demand more than anything else," said John Samuels, spokesman for the Illinois Student Assistance Commission but since these scholarships are awarded on a first-come, first-serve basis, students who applied after March 13th – roughly 140,000 – will have to find alternate funding. Illinois currently provides at least $387 million for the program and Governor Pat Quinn has proposed increasing that amount by $50 million to give financial assistance to 35,000 additional students – though it would take $1 billion to for every eligible student to receive a MAP grant.

Does this news impact your college plans or did you submit your financial aid forms in time?

Comments

Tips & Tricks for a More Affordable Internship Experience

March 23, 2012

Tips & Tricks for a More Affordable Internship Experience

by Alexis Mattera

Many students don’t have time to take on internships during the traditional academic year, making summer break the perfect time to gain experience in their fields of choice. Unfortunately, students looking to earn college credit for these often unpaid positions must still fork over the cash to cover the credit fees – sometimes thousands of dollars – despite not being enrolled in formal classes.

Is there a way to have a more affordable internship experience? Indeed, according to one of USA Today’s collegiate correspondents...and with 11 internships under her belt, she speaks from experience:

Are you interning this summer? Let us know where in the comments!

Comments

Job Opportunities, Starting Salaries Increase for Class of 2012

April 3, 2012

Job Opportunities, Starting Salaries Increase for Class of 2012

by Alexis Mattera

Soon-to-be college grads will have a little more to cheer about as they toss their mortarboards in the air this year, as both job opportunities and starting salaries for new graduates have increased since last year.

The National Association of Colleges and Employers recently reported job openings for the class of 2012 are up 10 percent since last. With increased opportunities also come an uptick in starting salaries: The average for 2012 grads is $44,442, a 6.6-percent increase over the reported average salary of the class of 2011.

Of course, these numbers depend on the fields graduates plan to enter – starting salaries for those pursuing careers in education and economics increased more and are higher overall, respectively, than those going into health sciences – but it is nice to hear some mostly positive news about the impact of higher education. College seniors, does this information put you more at ease or increase your stress level as graduation day nears?

Comments

Tuition Discounts Lack Effectiveness

April 5, 2012

Tuition Discounts Lack Effectiveness

by Alexis Mattera

When making your final college choice, would you choose the school touting generous tuition discounts or the institution offering the standard financial aid package? The choice may seem obvious but according to a new study, things aren’t always what they seem.

A survey of 400 private institutions conducted by the National Association of College and University Business Officers revealed tuition discounting could be losing its effectiveness as a way of luring students to colleges. Data show that though the rate of institutional discounts in the form of scholarships, grants and fellowships continues to rise – the average is predicted to hit 42.8 percent this year – 45 percent of the schools surveyed saw overall enrollment remain flat or drop and 53.2 percent saw a decline or no change in the number of freshmen they enrolled.

What do you think of the tuition discounting trend? Is it playing a role in your college decision or are other factors (location, reputation, programs of study, etc.) more important to you?

Comments

Out-of-Work Professor Turns to Essay Mills for a Paycheck

April 10, 2012

Out-of-Work Professor Turns to Essay Mills for a Paycheck

by Suada Kolovic

With the economy in a continuous slump, recent college graduates have come to somewhat expect a struggle when it comes to landing a job. But they’re not alone – even those with years of experience are having a hard time and turning to professions they aren’t exactly proud of: After nearly three years of unemployment and no health insurance, a former assistant professor has turned to writing for essay mills in order to earn a paycheck.

Jennifer Sunseri was an assistant professor at Texas Tech University before she was let go in 2009. With two master’s degrees in technical communications and Slavic linguistic and a Ph.D., Sunseri admits that early on that she wasn’t worried. "I thought for sure my skills as an educator and writer would see me through," Sunseri said. "I am still in shock at how many applications for writing instructor at the local community college, for GED tester, for office manager, for adjunct this and that at the local university, even for substitute teacher resulted in naught.” But after not seeing a doctor for almost three years and being behind on her rent, Sunseri decided enough was enough. Since February she’s worked for the essay mill and while she’s not proud of her new found career, Sunseri says there are some perks. She decides what projects she works on and admits writing on deadline keeps her in tip-top writing shape. "Ironically, the paper mill seems to be the only company that understands the value of my extensive education, and, really, two masters and a doctorate, well, I guess I've been training for a job like this all my life." (For more on this story, click here.)

What do you think about Sunseri’s new profession? Is it unethical or is she just doing what she needs to in order to get by?

Comments

Investment Strategies for College Students

April 13, 2012

Investment Strategies for College Students

by Radha Jhatakia

Most students begin to make decisions about what sort of financial investments they need to make after they graduate while they are still attending college. It’s not an easy decision – rather, it’s one that takes time and some level of research – but this short guide will help you get started.

You may have "made" a lot of money through economics projects where you "invested" in stocks but playing the stock market in real life is much different. With great risk, you can have a great payoff or a great loss and unlike your econ projects, investing requires real funding to make an initial investment, as a single share can be quite expensive depending on the stock. Research the stocks you are interested in and watch the market daily before investing any money. It sounds silly but the best starting point would be reading a book like "Stock Investing for Dummies."

If you’re wary about the stock market, a safer investment would be in a bank or credit union. Many banks do not have annual fees for college accounts but in the current economy, some financial institutions do not offer high interest rates for savings accounts, money markets or certificates of deposits (CDs). Credit unions often have higher interest rates and may charge annual fees but it depends on the institutions' individual policies. Here are the differences between these accounts:

  • Savings accounts: Savings accounts don’t require large balances and offer students the freedom of withdrawing money whenever needed. The downfall is low interest rates.
  • Money markets: Money markets require higher balances since banks use the accounts to make investments but the interest rate is higher since you make money off their investments. The caveat here is not having the money readily available and being charged fees for falling below the minimum balance.
  • CDs: CDs are great for long term use, as they require investments for a certain length of time. This account has a high interest rate and is insured by the FDIC but the drawback is breaking the CD to withdraw money means paying a hefty fee.

Are you currently investing your money? If so, how?

Radha Jhatakia is a communications major at San Jose State University. She's a transfer student who had some ups and downs in school and many obstacles to face; these challenges – plus support from family, friends and cat – have only made Radha stronger and have given her the experience to help others with the same issues. In her spare time, she enjoys writing, reading, cooking, sewing and designing. A social butterfly, Radha hopes to work in public relations and marketing upon graduation.

Comments

Recent Posts

Tags

ACT (20)
Advanced Placement (24)
Alumni (17)
Applications (82)
Athletics (17)
Back To School (73)
Books (66)
Campus Life (457)
Career (115)
Choosing A College (53)
College (1005)
College Admissions (242)
College And Society (309)
College And The Economy (377)
College Applications (147)
College Benefits (290)
College Budgets (216)
College Classes (446)
College Costs (494)
College Culture (600)
College Goals (386)
College Grants (53)
College In Congress (88)
College Life (567)
College Majors (221)
College News (591)
College Prep (166)
College Savings Accounts (19)
College Scholarships (159)
College Search (115)
College Students (456)
College Tips (116)
Community College (59)
Community Service (40)
Community Service Scholarships (27)
Course Enrollment (19)
Economy (122)
Education (26)
Education Study (29)
Employment (42)
Essay Scholarship (38)
FAFSA (55)
Federal Aid (99)
Finances (70)
Financial Aid (415)
Financial Aid Information (58)
Financial Aid News (57)
Financial Tips (40)
Food (44)
Food/Cooking (27)
GPA (80)
Grades (91)
Graduate School (56)
Graduate Student Scholarships (20)
Graduate Students (65)
Graduation Rates (38)
Grants (62)
Health (38)
High School (130)
High School News (73)
High School Student Scholarships (184)
High School Students (310)
Higher Education (110)
Internships (526)
Job Search (178)
Just For Fun (115)
Loan Repayment (40)
Loans (48)
Military (16)
Money Management (134)
Online College (20)
Pell Grant (28)
President Obama (24)
Private Colleges (34)
Private Loans (19)
Roommates (100)
SAT (23)
Scholarship Applications (163)
Scholarship Information (179)
Scholarship Of The Week (271)
Scholarship Search (219)
Scholarship Tips (87)
Scholarships (403)
Sports (62)
Sports Scholarships (21)
Stafford Loans (24)
Standardized Testing (46)
State Colleges (42)
State News (33)
Student Debt (84)
Student Life (512)
Student Loans (140)
Study Abroad (67)
Study Skills (215)
Teachers (94)
Technology (111)
Tips (507)
Transfer Scholarship (16)
Tuition (93)
Undergraduate Scholarships (35)
Undergraduate Students (154)
Volunteer (45)
Work And College (83)
Work Study (20)
Writing Scholarship (18)

Categories

529 Plan (2)
Back To School (357)
College And The Economy (516)
College Applications (253)
College Budgets (343)
College Classes (566)
College Costs (751)
College Culture (935)
College Grants (133)
College In Congress (132)
College Life (961)
College Majors (331)
College News (918)
College Savings Accounts (57)
College Search (390)
Coverdell (1)
FAFSA (116)
Federal Aid (132)
Fellowships (23)
Financial Aid (705)
Food/Cooking (76)
GPA (277)
Graduate School (107)
Grants (72)
High School (540)
High School News (259)
Housing (172)
Internships (565)
Just For Fun (223)
Press Releases (1)
Roommates (138)
Scholarship Applications (223)
Scholarship Of The Week (347)
Scholarships (596)
Sports (74)
Standardized Testing (58)
Student Loans (225)
Study Abroad (61)
Tips (836)
Uncategorized (7)
Virtual Intern (532)

Archives

< Apr May 2015 Jun >
SunMonTueWedThuFriSat
262728293012
3456789
10111213141516
17181920212223
24252627282930
31123456

<< < 29 30 31 32 33 34 35 36 37 38 > >>
Page 33 of 38